2026-08-09 · Source: Insurance Business UK
Summary in 3 Points • Aon's Q2 2026 report highlights AI and geopolitical risks affecting commercial insurance markets • AI-driven underwriting is enabling insurers to assess risk more granularly and differentiate pricing • Middle East conflict is increasing scrutiny in marine, aviation, and political violence insurance lines --- Aon's Q2 2026 Global Insurance Market Insights report reveals that while the commercial insurance market remains favourable due to abundant capacity and competition, AI and geopolitical factors are reshaping certain areas. Insurers are increasingly using AI and analytics to refine risk selection and pricing, making detailed risk data crucial for favourable outcomes. The report also highlights the impact of the Middle East conflict on underwriting practices in marine, aviation, and political violence lines, with insurers focusing more on policy terms and exposure management. Additionally, claims inflation continues to affect property, casualty, and specialty lines, with commercial auto and US casualty facing significant pressures.
The London insurance market may see shifts in underwriting practices as AI becomes more integral to risk selection and pricing. Underwriters could focus on clients who provide detailed risk data, potentially affecting policy wording and pricing strategies. The geopolitical tensions in the Middle East could lead to increased scrutiny and tighter terms in marine, aviation, and political violence lines, impacting exposure and claims management. Brokers in the London market may need to adjust their strategies to navigate these changes and optimise risk transfer for their clients.